The recent implementation
of what some researchers call the “Amazon tax” has led to a more level playing
field for brick-and-mortar retailers, according to a study by three Ohio State
University economists.

The study focused on the
purchasing habits of nearly 3 million households in five states that began a
permanent collection of taxes on Amazon purchases since 2012—California, New
Jersey, Pennsylvania, Texas and Virginia—and found that Amazon purchases
declined by 9.5% after the new state laws’ implementation. Amazon’s loss was
brick-and-mortar retailers’ gain, however, as the decrease in Amazon purchases
led to a 2% increase in purchases at physical stores. Further, the study found that
only Amazon purchases were affected by the new tax laws, as sales from online
operations of competing retailers—including those with brick-and-mortar
counterparts—grew 19.8%.

Sales tax equality has
been a contentious issue with retailers since Amazon began cast its shadow on
the retail landscape. In states where Amazon does not have a physical presence,
the online retail giant was not required to collect sales tax, putting
brick-and-mortar retailers in that state at a pricing disadvantage.

The Institute for Local
Self-Reliance and other retail groups and industry representatives have pointed
to Amazon’s exemption from sales tax collection as one of the keys behind its
marketplace dominance.